Tesco posts worst sales in 20 years

Tesco fell victim to the consumer slump with its worst UK sales in 20 years while rival Sainsbury’s reported only modest growth.

Tesco said UK second-half profits will be flat following its recent £500m investment in price cuts in a bid to boost market share, which fell from 30.8% to 30.4% in recent weeks.

It said that UK sales excluding new store space, VAT and petrol fell 0.9% in the three months to August 27. The group reported a 12% in underlying profits to £1.9bn in the half-year, boosted by a strong performance in Asia.

Sales rose 9% to £35.5bn.

Sainsbury’s said same-store sales including VAT increased by 1.9% in the 16 weeks to October 1, the same increase as the previous quarter.

Sainsbury’s, which recently changed its slogan to ‘Live Well For Less’, described its performance as “good” in a tough consumer environment.